Current through Register Vol. 49, No. 2, February 2024
A retirant under Arkansas Code §§ 24-7-201; 24-7-713, and any
amendments thereto, may rescind his/her decision to terminate active membership
and may become an active member upon reemployment.
POLICIES
1. A
retirant rescinding his/her decision to terminate active membership shall file
a written rescission on a form furnished by the ATRS Board.
2.
a) For
any school year in which a retirant takes a position in a public school, the
rescission form shall be filed with the Teacher Retirement System office on or
before June 30 of the previous year.
b) Should a retirant fail to meet the
deadline set out in 2(a), the school district may file an appeal for a waiver
of the required filing date.
3. The rescission shall become effective the
first day of the calendar month next following the date the written rescission
is received by the Board.
4. Any
annuity benefit formerly due from the System shall be terminated upon the
effective date of the rescission.
5. Upon rescission, the former retirant shall
be considered an active member and shall accrue additional credited service
subject to the following conditions:
a) If
reemployment terminates before the end of the fiscal year in which the former
retirant has accumulated at least three (3) years of credited service, the
former retirant shall become a retired member and the payment of annuity shall
resume upon such termination. The former retirant shall be entitled to receive
any member contributions which may have been made during the reemployment
period.
b) If reemployment
terminates after the end of the fiscal year in which the former retirant has
accumulated at least three (3) years of credited service, upon termination of
reemployment, the former retirant shall become a retired member and receive an
annuity which has been recalculated according to the benefit formula in effect
at the time of such termination of reemployment.
6. Effective July 1, 1993, if a retirant has
previously rescinded his/her decision to terminate active membership and has
become an active member by reemployment, but after becoming a retirant and
before rescinding had been employed in a position covered by the System, as an
active member he/she shall be eligible to purchase such previous service by:
a) Fulfilling the requirements set out in
Sec. 24-7-717(e)(2) (which is §5(b) of this policy);
b) Returning to the System all retirement
benefits received during such employment, together with regular interest from
the date of receipt of such payments to the date of repayment in full;
and
c) Paying to the System both
member and employer contributions for the previous service rendered after
becoming a retirant but before rescinding, plus interest from the date of
reemployment to the date of payment in full.
7. Upon rescission, a former retirant shall
be eligible to participate in the T-DROP subject to the following conditions:
a) The employee shall file a Retirement
Rescission form;
b) The employee
shall file a T-DROP application; and
c) The effective date will be the first day
of the calendar month next following the completion of at least thirty (30)
working days.
d) The years of
service used in the calculation of T-Drop reductions do not include service
rendered while rescinded.
e) The
former retirant's T-Drop deposit will be based on the monthly straight life
annuity benefit to which he/she was entitled on the effective date of
retirement plus retirant raises received during time of retirement. The T-Drop
deposit will not include the benefit provided in Arkansas Code Section
24-7-713(b).
8. A T-DROP
retirant who wishes to rescind must file a Retirement Rescission form and
receive a lump sum distribution of the remainder of the T-DROP account. Then,
following receipt of the T-DROP Application form and the completion of at least
thirty (30) working days, participation in the T-DROP will begin.
a) The years of service used in the
calculation of T-Drop reductions do not include service rendered while
rescinded.
b) The former retirant's
T-Drop deposit will be based on the monthly straight life annuity benefit to
which he/she was entitled on the effective date of retirement plus retirant
raises received during time of retirement. The T-Drop deposit will not include
the benefit provided in Arkansas Code Section 24-7-713(b).
c) Upon completion of a maximum of 10 years
of combined participation, the monthly deposits and accrued interest shall
cease.
9.
a) An early retirant under A.C.A. §
24-7-702 may rescind the decision to terminate active membership (retirement)
and may become an active member upon reemployment for the purpose of
participation in the Teacher Deferred Retirement Option Plan under the
following conditions:
i) Retirement Rescision
form must be filed with the System;
ii) The rescission shall become effective the
first day of the calendar month next following the date the written rescission
is received by the Board.
iii) Any
annuity benefit formerly due from the System shall be terminated upon the
effective date of the rescission.
iv) Re-employment will be for at least three
(3) years.
b) When the
early retirant who has rescinded accumulates the minimum number of years
required for participation in the T-Drop (28), he/she will enter the T-Drop at
that time and begin to accumulate a T-Drop account.
c) The early retirant's T-Drop account will
be based upon his/her voucher amount at the time of his eligibility to
participate in the T-Drop.
d) If
the early retirant who has rescinded terminates employment before the
completion of three (3) full years of credited service under rescission, the
following will apply:
i) The retirement
annuity will resume at the rate effective at the time of rescission (including
any cost of living adjustments and legislative adjustments);
ii) Member contributions paid while rescinded
will be refunded;
iii) Funds
accumulated in the T-Drop account will be forfeited. (Act 481 of
2001).
e) When the early
retirant who has rescinded completes three (3) full years of credited service
under rescission, he/she may retire and receive benefits accrued from both
accounts (T-Drop and retirement) as provided under normal T-Drop
provisions.
CONDITIONS UNDER WHICH A RETIRANT MAY RETURN TO COVERED SERVICE
OTHER THAN BY RESCINDING HIS RETIREMENT UNDER ACT 39 OF 1989
(Amended by Act 1293 of 1995; Act 384 of 1997; Act 30 of 1999;Act
1146 of 2001 (A.C.A.§ 24-7-708)
AGE AND SERVICE RETIRANT
1. Except for a waiver provided in accordance
with Act 30 of 1999 and Act 1146 of 2001, if a retirant returns to service - as
an employee of a public employer whose employees are covered by
ATRS1 - without rescinding his/her retirement under
Act 39 of 1989 (A.C.A. § 24-7-717), then, for each twelve-month period
ending June 30, the amount of his/her system annuity shall be subject to the
limitations equivalent to twice the limitations imposed by the social security
retirement test.. The amount a retirant may earn and still collect full
benefits depends upon whether he/ has reached "full retirement age (FRA)" as
defined in P.L. 106-182.
(a) Effective for
years ending after December 31, 1999, pursuant to P.L. 106-182, which
eliminated the Social Security retirement earnings test in and after the month
a person attains "full retirement age (FRA)", a retirant reaching full
retirement age may return to service without being subject to the earnings
limitations. "Full retirement age (FRA)" will gradually increase from age 65 to
age 67.2
(b) Effective July 1, 1992, a retirant that
is under age 65 may earn up to twice the Social Security earnings limitation
amount without affecting his/her ATRS benefits. If his/her ATRS covered
earnings exceed that amount, $1 in benefits will be deducted for each $2 earned
above the earnings limitation amount.
(c) For each year ending June 30, the social
security retirement test to be considered shall be the test in effect for the
calendar year beginning the January 1, immediately preceding June 30. The
retirant's earnings shall be his or her remuneration for the employment for the
year ending June 30.
(d) Unless the
system is directed otherwise in writing, the benefits of those retirants
exceeding the earnings limitations will be reduced in the proper amount in the
fiscal year following the fiscal year in which the earnings limitation is
exceeded. A retirant may direct ATRS to reduce benefits within the same fiscal
year the earnings limitation is expected to be exceeded.
2
(a)
Employers and retirants must report immediately, upon acceptance of employment
in a regular or special position covered by ATRS, a return to covered
employment by a retirant. A Statement of Employment Form must be completed
immediately by employers and retirants upon acceptance of employment for each
retirant hired in a position covered by ATRS.
(b) Employers will report semi-annually all
retirants who have returned to full or part-time employment in an ATRS covered
position and who have not rescinded their retirement. The semi-annual report
will be filed on a Retired Member Returned To Service Form which form will be
furnished by ATRS.
(c) In the event
that both the employee and his employer fail to notify the Teacher Retirement
System of a retiree's return to service and benefits are paid illegally due to
such lack of notice, the Teacher Retirement System shall delay restoration of
benefits until all funds paid illegally have been recovered either through
direct payment by the retiree or through delay in restoration of benefits by
the System.
3.
(a) Effective July 1, 1977, a retirant may
receive remuneration as an employee from any private employer or as a member of
the General Assembly without any effect on his/her
annuity.3
(b) Effective July 1, 1991, an age and
service retiree may be employed by a public employer whose employees are not
covered by ATRS without any effect on his/her annuity.
4. During any period of employment in a
position covered by the system (which is not covered by Act 39 of 1989) an age
and service retiree shall not accrue additional service credit, nor shall
he/she contribute to the Arkansas Teacher Retirement System.
24-7-708(e) which has not changed since July 1, 1971 reads: "During any
period of employment, a retirant shall not accrue additional credited service
nor shall he or she contribute to the system." Act 39 of 1989?" 24-7-717(d)(1):
upon rescission, a former retirant shall be considered an active member and
shall accrue additional credited service. See retirants return to service
policy.
5.
(a) Effective July 1, 1995, Act 1293 of 1995
provided that if a retirant is employed in a covered position by a state
college, university, or vocational-technical school, his annuity shall not be
subject to the limitations provided in Item 1.
(b) Effective July 1, 1997, Act 384 of 1997
repealed Act 1293 of 1995, making subject the ATRS earnings limitation the
annuity of a retirant who is employed in a covered position by a state college,
university or vocational-technical school, as provided in Item 1.
WAIVER OF EARNINGS LIMITATION
1.
(a) In
accordance with Act 30 of 1999, in accordance with rules and regulations
adopted by the State Board of Education, the Arkansas Department of Education
(ADE) may request of the ATRS Executive Director, a waiver of the conditions
subjecting annuities to the ATRS earnings limitation
(b) All requests for waiver must originate
with ADE. If approved, the waiver shall be effective for one (1) year from the
date of approval. The waiver may be reviewed for consideration annually by the
ATRS Executive Director upon request by ADE.
2.
(a)
Effective July 1, 2001,under Act 1146 of 2001,the ATRS Executive Director is
authorized to take appropriate action on waivers of the ATRS earnings
limitations requested by the Department of Education under the following
conditions:
i. The retiree is hired by the
appropriate entity due to a shortage of certified teachers in a critical
academic area in which the retiree is certified; or
ii. The retiree is hired by a school district
which qualifies as a school district in academic distress as defined in §
6-20-1602.
(b) Critical
academic areas in which there is a shortage of certified teachers shall be
determined annually by the State Department of Education.
(c) The waiver of the earnings limitations
shall be for one (1) year, with the option of renewal, provided the same
conditions for granting the original waiver still exist;
(c) Employers will be responsible for
reporting to ATRS, all retirees who have returned to employment under these
provisions (Act 1146 of 2001).
DISABILITY RETIRANT
Under the provisions of the Teacher Retirement law a disability retiree
is permitted, should he regain his health and should he be employed under
contract in a position covered by the Arkansas Teacher Retirement System to
establish a year or more of service credit and have his benefits recomputed at
a time of retirement either or age and service or disability as the case might
be.
1. Disability Retiree Employed
Full-Time
When a disability retiree is employed under contract in a position
covered by the Teacher Retirement System as a full-time employee in a regular
or special position on a fiscal year basis, the Teacher Retirement System is
required to remove him from the disability payroll. It is the responsibility of
the employing agency to report such employment to the retirement office
immediately. Unless the retiree was a member of the non-contributory plan, it
is also the responsibility of the employing agency to withhold 6% of applicable
salary. If the retiree completes a minimum of 120 days or more during a fiscal
year in Arkansas, thus adding a year's service credit, he can then again make
application for disability or age and service retirement and his benefits will
be recomputed based on the additional year or years of service credit.
Full-time employment is defined as a member working at least 480 hours in a
fiscal year. A disability retiree shall not be permitted to establish service
credit when employed in a part-time position.
2. Disability Retiree Employed Part-Time
A disability retiree employed part-time will be subject to the same
earnings limitation policy as age and service retirees. Part-time employment is
defined as a member working less than 480 hours in a fiscal year.
June 15, 2004
1
(Prior to July 1, 1991, the
earnings limitation applied to retirants who were
* employees with ATRS, ASHERS, or ASERS from 7-1-71 through
6-30-77;
* employees with a Public employer, whose employers are
covered by a State supported retirement plan or the University of Arkansas from
7-1-77 through 6-30-78;
* employees of a public employer whose employees are
covered by a retirement plan supported wholly or in part by State contributions
from 7-1-78 through 6-30-91; )
2
Previously, a retirant aged 65
to 69 could earn up to twice the Social Security amount without affecting
his/her ATRS benefits. If his/her ATRS covered earnings exceeded that amount,
$1 in benefits was to be deducted for each $3 earned above the earnings
limitation amount.
3 (From 7-1-71 through 6-30-77 this
"exemption" covered employees receiving remuneration "from any other public
employer or private employer.")
